Allstate Posts Improved Underwriting, Analysts See Upside Potential

Allstate Corp (ALL) has reported a significant improvement in its Q2 underlying combined ratio, driven by reduced catastrophe losses. Fitch Ratings predicts sustained underwriting profitability for property and casualty insurers like Allstate. Analysts have set an average price target of $233.65, indicating a potential upside of 15.94% from its current trading price. GuruFocus estimates suggest a potential downside of 13.71% from its current price, based on GF Value calculations.

Allstate Corp (ALL) has reported a significant improvement in its Q2 underlying combined ratio, driven by reduced catastrophe losses. The insurer's combined ratio, a key metric for profitability, dropped to 79.5% from 84.3% in the same period last year, marking a notable year-over-year improvement [1].

Fitch Ratings predicts sustained underwriting profitability for property and casualty insurers like Allstate as the year progresses. The positive outlook is attributed to the reduced catastrophe losses, which have significantly impacted the company's financial performance [1].

Analysts have set an average price target of $233.65 for Allstate, indicating a potential upside of 15.94% from its current trading price of $201.53. The consensus from 17 analysts spans a high of $275.00 and a low of $198.00 [1].

GuruFocus estimates suggest a potential downside of 13.71% from its current price, based on GF Value calculations. GF Value is a measure derived by GuruFocus to estimate the fair value of the stock based on historical trading multiples, past business growth, and anticipated future performance [1].

Institutional investors and hedge funds have been actively managing their stakes in Allstate. Concentric Capital Strategies LP reduced its holdings by 54.0%, owning 17,781 shares valued at approximately $3.68 million after selling 20,832 shares in the 1st quarter [2]. Sequoia Financial Advisors LLC boosted its stake by 30.3% during the 1st quarter, owning 11,361 shares valued at $2,352,000 [2]. Atlas Capital Advisors Inc. increased its stake by 197.3% during the 1st quarter, owning 6,712 shares valued at $1,390,000 [2].

Allstate's recent earnings report showed strong performance with earnings per share of $5.94, beating the consensus estimate of $3.20 by $2.74. The company also announced a quarterly dividend of $1.00 per share, payable on October 1st to shareholders on record as of August 29th [2].

Allstate's market cap stands at $53.85 billion, with a price-to-earnings ratio of 9.61 and a beta of 0.37. The company's current ratio is 0.43, and its debt-to-equity ratio is 0.37 [2].

References:
[1] https://www.gurufocus.com/news/3097536/allstate-all-sees-improved-underwriting-results-amid-reduced-catastrophe-losses
[2] https://www.marketbeat.com/instant-alerts/filing-concentric-capital-strategies-lp-has-368-million-stock-holdings-in-the-allstate-corporation-all-2025-09-04/